Banking sector must accelerate reform efforts, say experts

Update:
November, 19/2015 - 09:13

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"In 2015, due to the explosion of information technology as well as the strong growth of electronic services all over the world, banking services on the platform of mobile devices are developing rapidly in Viet Nam," Tam said. — Illustrative image/ Photo thedrum.co

HCM CITY (VNS) — The banking sector has experienced dramatic changes this year but has more reform is needed, delegates heard at the Viet Nam Retail Banking Forum 2015 held yesterday in HCM City.

Tran Thi Hong Hanh, general secretary of the Viet Nam Banks Association, said: "The restructuring process with merger & acquisitions, efforts and steps taken by the State Bank of Viet Nam to bring the bad-debt ratio under 3 per cent, and the preparation for financial integration of ASEAN are the three factors motivating transformation and innovation in the banking sector and retail banking."

Also speaking at the forum, Le Thanh Tam, CEO of International Data Group (IDG) ASEAN, presented the Viet Nam Banking Report 2015 at the forum, which discussed customer-centric and tech-savvy models for next-generation banking.

"In 2015, due to the explosion of information technology as well as the strong growth of electronic services all over the world, banking services on the platform of mobile devices are developing rapidly in Viet Nam," Tam said.

As of 2014, there were 30 banks participating in Viet Nam, compared to 19 banks in 2012.

In a survey on customer perspectives for retail banking, IDG found an upward trend in customers' preferences and attention on electronic and mobile-based products and services, from an insignificant rate in 2013 to 12 per cent in 2015.

"This is also one of the major aspects customers require improvements in the next two years. Moreover, despite current dominance in the market, domestic banks are losing market share to foreign-owned banks, largely thanks to their customer-centric policies and simplification of procedures," he added.

He said that Paypal, Google Wallet and others were an international trend.

"About 53 per cent of customers now pay attention to information security, compared to 12 per cent in 2012," he said. "The banking industry needs to improve their technology, procedures and professional banking services."

The Viet Nam Retail Banking Forum (previously known as ASEAN Banker Forum) is one of the most prestigious regional forums for banking leaders, technology directors, specialists in the finance sector and companies that provide IT solutions for the banking industry.

The aim is to discuss key issues in which banks are interested and come up with solutions to improve banks' operational performance in the region.

The event was co-organised by Viet Nam Banks Association (VNBA) and International Data Group (IDG Viet Nam).

Within the framework of the forum was the Viet Nam Outstanding Banking Services Awards which aims to honour the important role of banks and IT solution companies to the banking sector and the economy.